We earn commissions if you shop through the links below. Read more
Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on May 3, 2022
Investment range
$4,050 - $10,100
Revenue potential
$54,000 - $216,000 p.a.
Time to build
0 – 3 months
Profit potential
$48,000 - $86,000 p.a.
Industry trend
Growing
Commitment
Flexible
When establishing your tile installation business, consider these significant factors:
Starting a tile installation business has pros and cons to consider before deciding if it’s right for you.
Trends in the tile installation industry include:
Challenges in the tile installation industry include:
Startup costs for a tile installation business range from $4,000 to $10,000. Costs include a wet tile saw and other tools, as well as a vehicle to transport tools. The vehicle only needs to be large enough to hold your tools because the customer should generally get the materials delivered directly from the supplier.
You can learn tile installation for about $500 in just three weeks from the Ceramic Tile Education Foundation, then take an exam to become a certified tile installer. Courses and the exam involve hands-on work, so you might need to travel to one of their sites. You can also search for tile courses near you, or work as a tile apprentice. The best education is hands-on experience.
You’ll need a handful of items to successfully launch your tile installation business, including:
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Setting up a business name and corporation | $150 - $200 | $175 |
| Business licenses and permits | $100 - $300 | $200 |
| Insurance | $100 - $300 | $200 |
| Business cards and brochures | $200 - $300 | $250 |
| Website setup | $1,000 - $3,000 | $2,000 |
| Tools | $1,000 - $3,000 | $2,000 |
| Vehicle to transport tools | $1,500 - $3,000 | $2,250 |
| Total | $4,050 - $10,100 | $7,075 |
Floor and shower tile installation prices range from $8 to $20 per square foot, depending on whether backer board is also installed. Backsplash tile installation is $25 to $30 per square foot. These calculations will assume a $15 per square foot price, and an average job size of 150 square feet. Your profit margin should be about 90% if you’re working by yourself since the customers pay for all materials.
In your first year or two, you could do two jobs per month, bringing in $54,000 in annual revenue. This would mean more than $48,000 in profit, assuming that 90% margin. As your business gains traction and you begin to get referrals, sales could climb to eight jobs per month. At this stage, you’d hire other tile installers and helpers, reducing your margin to around 40%. With annual revenue of $216,000, you’d make a tidy profit of $86,000.
There are a few barriers to entry for a tile installation business. Your biggest challenges will be:
Now that you know what’s involved in starting a tile installation business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Research tile installation businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a marble tile installation company or a stone tile installer.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as tiling backsplashes or showers.
This could jumpstart your word-of-mouth marketing and attract clients right away.
In addition to tile services, if you have the skills, you could install other types of flooring and remodeling or handyman services.
You should also have a list of tile manufacturers or suppliers you can refer clients to. You can find local companies, or you can find companies online that will deliver. Some include:
Some customers may prefer to go to a local tile shop with a showroom. If you find local partners, you may even be able to negotiate a deal with them for a commission when you refer customers to them.
Prices vary based on location, type of tile, and what’s being tiled. Floor or shower tile with backer board can range from $10 to $20 per square foot. Backsplashes run $25 to $30 per square foot. Check prices in your area to make sure you’re competitive. You should aim for a profit margin of about 90%.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Your target market will be broad so you should spread out your marketing to include sites like TikTok, Instagram, and Facebook. You should also connect with people on LinkedIn.
Being on LinkedIn gives you much credibility, plus you can connect with realtors who can give you referrals. You can also partner with tile manufacturing companies that don’t do installation.
It’s unlikely that you’ll ever need a physical location unless you want to become a tile dealer as well as an installer, and then you’ll need a showroom space. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool below. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to tile installation businesses.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your tile installation business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best option, other than friends and family, for funding a tile installation business.
Starting a tile installation business requires obtaining a number of licenses and permits from local, state, and federal governments.
In some states, you may need a general contractor’s license depending on the type of work that you do. Check with your state for requirements.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your tile installation business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as FONN, JOBBER, or Octopuspro, to manage your estimates, projects, schedule, and billing.
Developing a website for a tile installation business is a critical step in enhancing your online presence and attracting more clients. You have two primary options: using a website builder like Wix, Squarespace, or WordPress, which are user-friendly and cost-effective for those who prefer a DIY approach, or hiring a professional web developer for a more customized and potentially more sophisticated site.
Regardless of the method, it’s essential to optimize your website for search engines (SEO) to increase visibility. This includes using relevant keywords, ensuring mobile responsiveness, and having fast loading speeds. Additionally, incorporating clear and compelling call-to-actions (CTAs) is crucial. These CTAs should encourage potential customers to contact you, request quotes, or view your portfolio of completed tile installations.
Launching a tile installation business requires a strategic approach to marketing to stand out in a competitive market. Here are some effective strategies:
Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your tile installation business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your tile installation business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a tile installation business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in tile installation for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in tile installation. You’ll probably generate new customers or find companies with which you could establish a partnership.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a tile installation business include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Everyone needs flooring, and more and more people are choosing tile these days, which is why now is a great time to get in and ride this growth wave. If you’re into tiles and have a passion for perfecting a craft and a desire to help people upgrade their homes, a tile installation business could be perfect for you.
After reading this article you’ve got the business part down pat, so now it’s time to get to work and launch your successful new tile business!
Yes, tile installation can make for quite a profitable business. If you do great work, you’re bound to get referrals, so there’s no limit to how much your business can grow.
While specific qualifications can vary by region, there are no specific mandatory qualifications for tiling. However, having a high school diploma or equivalent, completing vocational training or apprenticeships, and obtaining relevant certifications or licenses can demonstrate your expertise and credibility as a professional tiler.
The time it takes to learn tiling can vary depending on factors such as the complexity of projects, the amount of practice and hands-on experience, and the learning methods employed. Generally, it can take several months to a couple of years to develop the necessary skills and proficiency in tiling.
To ensure proper surface preparation before installing tiles, follow these steps: clean the surface thoroughly, ensuring it is free from dust, grease, and debris; repair any cracks, holes, or uneven areas using appropriate patching compounds; ensure the surface is level and flat by using self-leveling compounds if necessary; prime the surface to enhance adhesion; and finally, use the appropriate underlayment or waterproofing membranes, depending on the specific project requirements.
Popular tile patterns and designs among customers can vary based on current trends and personal preferences. Some popular choices include subway tiles, herringbone patterns, chevron patterns, geometric designs, mosaic tiles, and natural stone tiles. It is essential to stay updated with emerging trends and offer a diverse range of options to cater to different customer tastes.
Create a professional website showcasing your previous projects, testimonials, and contact information; utilize social media platforms to share high-quality photos of your work, engage with your audience, and run targeted advertising campaigns. Collaborate with interior designers, contractors, or real estate professionals to establish referral networks.
Published on December 1, 2022
The services sector is undoubtedly the biggest economic sector in the US as it accounts for nearly 70% of the country’s gross domestic product. It ...
Read Now
Published on July 13, 2022
As the US economy regains strength in the wake of the pandemic, the construction industry is anticipating strong growth with plenty ofopportunities, ...
Read Now
Published on June 30, 2022
You might think you can’t do business in a small town. But did you know that some major corporations are based in small towns? Walmart is inBenton ...
Read Now
No thanks, I don't want to stay up to date on industry trends and news.
Step 1: Develop a rock-solid business plan. Step 2: Don’t lose your marbles when customers ask for ‘creative’ tile patterns. Step 3: Remember, the only thing more cracked than your tiles should be your sense of humor. Good luck, and may your business always stick (like grout)!